TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2018
COMMITTEE ON FINANCE
Mr. David St. Pierre, Executive Director
Title
Report to the Board of Commissioners on The Boeing Company’s Request for Reimbursement in the amount of $128,960.09 pursuant to the terms of a Tax Reimbursement Agreement approved by the Board on September 6, 2001
Body
Dear Sir:
On September 6, 2001, the Board of Commissioners authorized the District to enter into a Tax Reimbursement Agreement (Agreement) with The Boeing Company (Boeing). The Agreement requires the District to reimburse Boeing for property taxes paid to the District for a period not to exceed 20 years as an incentive for Boeing relocating its corporate headquarters to Illinois. The Agreement was pursuant to amendments to the Corporate Headquarters Relocation Act and the Property Tax Code that offered incentives to large, multi-national corporations to relocate their corporate headquarters to Illinois.
On February 22, 2018, Boeing submitted its yearly request for reimbursement in the amount of $128,960.09 for the 2017 calendar year. The request for reimbursement was accompanied by copies of paid tax bills and other supporting documentation evidencing the amount of reimbursement that Boeing is entitled to under the Agreement.
The Agreement provides that reimbursement is contingent upon Boeing complying with certain conditions precedent set forth in the Agreement that must be verified by the City of Chicago (City). On March 9, 2018, the District received a report from the City confirming Boeing’s compliance with such conditions. The City’s verification of Boeing’s compliance renders Boeing eligible for reimbursement. Payment will be made in accordance with the applicable sections of the Agreement.
Respectfully Submitted, Susan t. Morakalis, General Counsel, STM:bh